Abstract: The elements in the WFEM (wavelet finite element method) are constructed by the scale function of BSWI (B-spline wavelet on the interval), and an elemental transformation matrix is formed to combine the parameters in both wavelet and physical spaces. The dynamic programming technique and Tikhonov regularization are used for the moving force identification, which inherently avoids large fluctuations and ill-condition. The superiority of WFEM and multi-scale property of BSWI is validated in the numerical cases using several distributed measured dynamic responses. The result shows WFEM gives more accurate results over the TFEM (traditional finite element method) under the same condition with fewer elements; and the scales can be conveniently changed and chosen to satisfy any identification precision we desired.